Leading Indicators of Banking Crises
Author | : International Monetary Fund |
Publisher | : International Monetary Fund |
Total Pages | : 33 |
Release | : 1998-06-01 |
ISBN-10 | : 9781451951745 |
ISBN-13 | : 1451951744 |
Rating | : 4/5 (45 Downloads) |
Download or read book Leading Indicators of Banking Crises written by International Monetary Fund and published by International Monetary Fund. This book was released on 1998-06-01 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines episodes of the banking system distress and crisis in a large sample of countries. The empirical results identify several macroeconomic and financial variables as useful leading indicators. The main macroeconomic indicators were of limited value in predicting the Asian crises; the best warning signs were proxies for the vulnerability of the banking and corporate sector. Full-blown banking crises are shown to be more associated with external developments, and domestic variables are the main leading indicators of severe but contained banking distress.